Business
PetroTal Announces 2023 Capital Investment Budget of US$125 million
Return of capital program that targets a minimum quarterly cash liquidity of US$50 million Develo...
About this update from Petrotal Corp.
[{"type":"text","content":"PetroTal Announces 2023 Capital Investment Budget of US$125 millionReturn of capital program that targets a minimum quarterly cash liquidity of US$50 millionDevelopment plan targeting average 2023 production between 14,000 and 15,000 bopdAnticipated 2023 EBITDA of $220 million at $84/bbl Brent oil forecast Calgary, Alberta and Houston, Texas--(Newsfile Corp. - January 16, 2023) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (OTCQX: PTALF) (\"PetroTal\" or the \"Company\") is pleased to announce a fully funded 2023 capital investment program of $125 million that is expected to generate significant after-tax, pre debt service free cash flow of $55 million in 2023. Combined with the year-end 2022 cash balance of over $100 million, other working capital inflows, and contracted 2023 cash inflows of $57 million from Petroperu, the Company expects to have approximately $240 million of available cash to repay the Company's debt, accrued interest, and initiate a capital return program to shareholders through a combination of share buybacks and dividends. All amounts are quoted in US dollars.2023 Key Highlights and Objectives(1,2)Target 2023 production growth of 15% to 19% above 2022 levels, equivalent to 14,000 and 15,000 barrels of oil per day (\"bopd\") with similar associated sales volumes. Should additional sales capacity become available mid-year, the Company may be able to increase late 2023 production to approximately 17,000 bopd;Generate EBITDA of $220 million, based on the forward strip price of Brent oil for 2023 (at Dec 30, 2022), representing an average of $84/bbl;Drill and complete three horizontal development wells and one water disposal well in 2023, and complete two workovers of previously drilled wells;Invest in production infrastructure to support future development and production, including additional oil storage and water injection systems, the construction of a new west drilling platform (\"L2 West Platform\"), enabling future drilling until the end of 2025 and spending on erosion control for the Company's site; Generate after-tax free cash flow (before all debt service) of approximately $55 million, net of an estimated $40 million in corporate tax and related obligations; Become debt free in Q1 2023 from full payout of the remaining $80 million in bonds and thereafter maintain a minimum liquidity balance of $50 million, d...